Buying a Business in Dubai: How to Check the Asking Price Before You Pay
By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-09-14
Found a business for sale in Dubai? How to test the asking price, rebuild real earnings, spot red flags and protect yourself before making an offer.
Why the asking price is not the value
Dubai listing prices are usually anchored on revenue, fit-out cost or the seller's personal target rather than transferable earnings. A buyer pays for the profit the business will reliably produce after the owner leaves, priced for risk. The asking price is only where negotiation starts.
How to check the seller's numbers
Request two to three years of financial statements, VAT returns, bank statements and corporate tax records. Reconcile revenue per the accounts against VAT returns and bank deposits. Persistent gaps need explaining, and unrecorded cash sales should be treated as worth nothing to a buyer.
How to normalise EBITDA before applying a multiple
Deduct a market salary for the owner's role if the owner draws money rather than taking pay, strip out one-off and personal costs and income, and reject any add-back the seller cannot support with invoices, contracts or bank entries. The result is normalised EBITDA.
How to value a business before buying it
Apply Assetica's indicative reference multiples to normalised EBITDA, such as 3x to 5x for trading, retail and F&B, then adjust for owner dependence, customer concentration, lease term and unaudited books. An illustrative example shows a 4x asking price becoming about 6.7x on verified earnings.
Share purchase or asset purchase: what you inherit
A share purchase brings the company's full history, including tax, VAT and liabilities. An asset purchase moves chosen assets, but some licences, permits and contracts may need re-application or consent. VAT on the price depends on whether the sale qualifies as a transfer of a going concern.
UAE checks to confirm before you sign
Confirm trade licence activity and transferability, registration of the share transfer with DET or the free zone authority, landlord consent and remaining lease term, accrued end-of-service gratuity, corporate tax registration and filings, and e-invoicing readiness against the 2027 implementation deadlines.
Red flags that should slow you down
Warning signs include revenue that does not reconcile to bank statements, unrecorded cash sales, one dominant customer, a lease expiring within the year, an owner who is the business, add-backs without paperwork and pressure to decide quickly.
How to protect yourself in the price and the contract
Use holdbacks to retain part of the price against later claims, earn-outs to pay for earnings once proved, warranties and indemnities for specific risks, and a completion accounts or locked-box mechanism to fix how cash, debt and working capital affect the final price.
When to pay for an independent valuation and due diligence
Commission a buy-side valuation and financial due diligence before a binding offer. A standard Assetica report takes 5 to 7 business days from complete documents, and the fee is usually small relative to the purchase price. Assetica does not audit or broker deals.
What to do next
Reconcile the seller's records, rebuild normalised EBITDA and compare the result with the asking price. For an independent view, book a scoping call to agree scope for a buy-side valuation, financial due diligence or an M&A transaction valuation.
Frequently Asked Questions
How do I know if the asking price for a business in Dubai is fair?
Rebuild the earnings yourself. Reconcile two to three years of accounts, VAT returns and bank statements, normalise EBITDA by adding a market salary for the owner and removing unsupported add-backs, then apply an indicative sector multiple and adjust for risks such as owner dependence and lease term. If the asking price implies a much higher multiple than verified earnings support, it is not fair.
How is business valuation calculated?
For most established small and mid-sized businesses, value starts with normalised EBITDA multiplied by an indicative sector multiple, for example 3x to 5x for trading, retail and F&B businesses. The multiple is then adjusted for risk. The result is an enterprise value, and debt, cash and working capital are adjusted to reach the price for the shares.
How much should I pay for a business valuation?
The fee depends on the scope, the purpose, the number of entities and the state of the records, so it is quoted after a scoping call rather than from a fixed list. For a buyer, the cost is usually small relative to the purchase price and to the risk of overpaying. A standard Assetica report takes 5 to 7 business days from complete documents.
How do I calculate the valuation of my business?
Start with verified revenue and profit, then normalise EBITDA by including a market salary for the owner's role and removing one-off and personal items. Apply an indicative multiple for your sector and move within the range according to owner dependence, customer concentration, lease security and the quality of your books. An online calculator gives a first indicative range.
Do I take on the seller's liabilities when buying a company in Dubai?
In a share purchase, yes. You buy the company with its history, including tax and VAT positions, unpaid liabilities and staff end-of-service gratuity accrued under UAE Labour Law. In an asset purchase you acquire chosen assets instead, although some licences, permits and contracts may need re-application or consent. Warranties, indemnities and holdbacks protect against what diligence cannot rule out.
What documents should I ask for before buying a business in Dubai?
Ask for two to three years of financial statements, management accounts for the current year, VAT returns, full bank statements, corporate tax registration and filings, the trade licence, the memorandum of association, the lease, key customer and supplier contracts, and a staff list with start dates and salaries so you can estimate end-of-service gratuity.
Speak to Assetica about Financial Due Diligence
Assetica is an independent business valuation firm in Dubai. We do not audit and we do not broker deals, so the number carries no conflict. Read more about financial due diligence, or book a free scoping call. Standard reports are issued in five to seven business days.